EUR/USD fails to resist above 200-DMA

Having peaked just ahead of 1.1090 levels earlier on the day, the EUR/USD pair is seen easing slightly, mainly in response to a minor-recovery seen in the greenback against its major peers.

EUR/USD back below 200-DMA at 1.1087

Currently, EUR/USD now trades +0.17% higher at 1.1076, retreating from session highs printed at 1.1091, just few pips above the 200-DMA barrier placed at 1.1087.  A renewed rally seen in the main currency pair lost legs just below 1.11 handle as the comments from Fed official Mester lent some support to the USD bulls.

FOMC member Mester sounded upbeat on the US medium-term outlook, despite the Brexit-led uncertainty in the markets, while also added that, “Rates on gradual upward slope, timing of moves dependent on data.“ Meanwhile, the USD index now trades -0.13% at 96.45 versus a -0.23% drop seen previously.

However, the major keeps the bids and remains supported amid a better risk tone and a quiet economic calendar, as all eyes remain focused on the Fed speaks and US macro releases in the coming days.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1087/91 (200 & Daily high). A break beyond the last, doors will open for a test of 1.1130/50 (20-DMA/ psychological levels). On the flip side, the immediate support is placed at 1.1029/22 (Jul 6 & Jun 30 low) below which 1.1006/00 (Jun 26 low/ round figure) could be tested.